Jan. 23 (Bloomberg) --Chinese solar stocks rose in New York
after U.S. President Barack Obama called for the development of
sustainable energy in his inauguration speech, boosting the
outlook for panel manufacturers.

The Bloomberg China-US Equity Index of the most-traded
Chinese shares in the U.S. rose 0.1 percent to 101.79, as 36
stocks climbed while 18 declined. Yingli Green Energy Holding
Co., China’s fourth-largest solar maker, surged 10 percent,
while Trina Solar Ltd., the third-biggest, soared the most in
two weeks. TAL Education Group tumbled after issuing a sales
forecast that missed analysts’ estimates, while China Mobile
Ltd. traded at the first discount to Hong Kong in a week.

Yingli extended its surge this year to 26 percent after
Obama said that the U.S. will respond to “the threat of climate
change” and transition toward sustainable energy sources. The
president wouldn’t have mentioned climate change if his
administration weren’t preparing policy on the subject, David
Doniger, climate policy director at the Natural Resources
Defense Council in Washington, said yesterday.

The address “showed a very positive outlook for renewable
energy,” Dave Smith, a portfolio manager of the Gabelli Green
Fund, said by e-mail from Purchase, New York yesterday. “The
development of solar farms in the U.S. will absorb production
capacity globally, and would benefit Chinese makers as well.”

Solars Advance

The Hang Seng China Enterprises Index added 0.6 percent in
a third day of gains to 12,196.74, the highest level since
August 2011. The Shanghai Composite Index of domestic Chinese
shares retreated 0.6 percent to 2,315.14, dropping from a seven-month high.

LDK Solar Co., the second-largest maker of wafers globally,
climbed 7.7 percent to $1.97 in its first increase in three
days. The company, which has more than $3.1 billion in debt,
agreed to sell about a 12 percent stake to Fulai Investments
Ltd. for $31 million, it said in a regulatory filing yesterday.

Xinyu-based LDK plans to issue 17 million new shares at
$1.83 each, which will boost its total outstanding to about 144
million, and offered two board seats to Fulai, according to the
document.

TAL Sinks

American depositary receipts of TAL, an after-school
tutoring services provider, declined 5 percent to a one-month
low of $8.83 in its third day of declines in New York.

The Beijing-based company said yesterday sales for the
three month ending in February will rise as much as 15 percent
from a year earlier to $60 million. That was below the average
$64 million forecast of five analysts in a Bloomberg survey.

TAL’s $48.9 million revenue for the quarter through
November also fell short of analysts’ $49.5 million mean
estimate. It reported net income per ADR of 7 cents, compared
with analysts’ estimates of 1 cent.

“Many Chinese educational companies have expanded too fast
in the past year, hurting their profit margin,” Tian X. Hou,
the founder of T.H. Capital LLC, a research company that focuses
on Chinese stocks listed in the U.S., said by phone from Beijing
yesterday. “TAL’s quarterly sales guidance was below our
projection as well as the consensus.”

Ambow Retreats

Ambow Education Holding Ltd., a private education company
also based in Beijing, dropped 4.2 percent to $2.06, a record
low. Ambow reported in July a net loss for the three months
through March of $12.7 million, compared with net income of $2
million a year earlier. The company hasn’t published financial
results since. Ambow’s media manager Mandy Li didn’t respond to
Bloomberg’s e-mails seeking comment on when it plans to release
earnings.

New Oriental Education & Technology Group Inc., the biggest
private educational service provider in China, slid 1.4 percent
to a one-month low of $18.1, extending its decline into a fourth
day. The company is scheduled to report earnings on Jan. 29 for
the three months ended Nov. 30. It may post its first quarterly
loss since the three months ended May 31, 2007, data compiled by
Bloomberg show.

China Mobile’s 5.5 million addition of third-generation
phone subscribers was partly offset by its 2.5 million loss in
2G service users, while China Unicom attracted 10 percent fewer
new 3G customers in December compared with a year earlier,
Bloomberg Industry said in research reports Jan. 21, citing
company data.

Ten-day volatility on the China-US gauge fell to 14.6
yesterday, the lowest level since Dec. 28. The Bloomberg Chinese
Reverse Mergers Index, which tracks a basket of companies that
gained U.S. listings after buying firms that already trade,
advanced 1.2 percent to 79.99, the highest level since May.